Bitcoin Dips 0.97% But Bullish Trend Emerges

Bitcoin (BTC) has experienced a slight decline of 0.97%, bringing its price to $84,694.73. Despite this minor setback, the daily chart indicates a bullish trend, with the price action moving above the midline of the Bollinger Bands. This movement suggests a growing upward momentum after a prolonged consolidation phase, hinting at a potential shift in market sentiment as bulls attempt to regain control. The recent tightening and subsequent expansion of the Bollinger Bands further support the possibility of an imminent breakout.

The Bollinger Bands (20, SMA) currently show signs of increasing volatility. The upper band is at $88,723.44, serving as immediate resistance, while the lower band provides support at $77,392.08. Bitcoin's interaction with the upper region of this envelope is a bullish signal, especially if the price closes convincingly above the upper band. Such a move could validate a rally towards the critical $90,000–$95,000 range. However, if sellers regain control, a fallback to the $80,000–$83,000 consolidation zone remains a possibility.

The MACD (12, 26, close) reinforces this outlook, showing a narrowing gap between the MACD line (-803.81) and the signal line (-1,273.06), indicating an impending bullish crossover. The histogram turning green with a current value of 469.25 reflects growing bullish momentum. Historically, this technical setup often precedes short-term price surges. The momentum, while early, shows a favorable shift in sentiment that could translate into a stronger move if supported by volume.

Despite these bullish indicators, caution is advised. Bitcoin is still below its 20-day SMA, meaning a trend reversal is not yet confirmed. The upper Bollinger Band poses a significant barrier. Traders should look for confirmation via a strong daily close above $88,700 and increasing trading volume. A failure to sustain current levels may result in another phase of sideways movement or a minor retracement.

Given the technical landscape, Bitcoin is likely to challenge the $86,000–$88,000 resistance zone in today’s session. A break and hold above $88,723 could accelerate bullish momentum, targeting the psychological $90,000 level. Conversely, rejection of this barrier may trigger a pullback to $82,000 or below. Momentum indicators favor the bulls, but conviction from buyers is crucial to sustain the trend.

Bitcoin is entering a critical phase where momentum indicators and price structure hint at a bullish breakout. The widening Bollinger Bands, combined with a near MACD crossover, paint a promising technical picture. However, a clear break above key resistance levels is essential for further upside. Traders should stay alert today as BTC tests the upper bounds of its recent range—success here could mark the beginning of a broader upward move toward $90,000 and beyond.